Study: Washington No.1 in liquor taxes

By JAKE ELLISON, SEATTLEPI.COM STAFF

Updated 6:02 pm, Thursday, October 31, 2013

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10 states with the highest taxes on alcohol

We knew taxes on alcohol were high here compared to the rest of the universe, especially after liquor sales were privatized, and now a number-crunching study by NerdWallet finds Washington has the highest accumulative taxes on alcohol in the nation.

They’re still crunching numbers to see how we stack up in this vein of the multiverse. Meanwhile, click through the gallery to get the rundown of the top 10 states taxing booze the most. less

*Control states where the government controls all sales. Due to pricing controls, no direct tax rate is calculated or price controls for spirits result in effective excise tax rate of 0 or less.. Ranking based on tax rate and consumption for other alcohol categories. less

What NerdWallet said: Old Dominion is certainly proud of its beer and wine offerings, though their state taxes put them in the top 5 of the nation. Beer is by far the best deal, with around 2.5¢ in state taxes per drink. Wine will run you 5.9¢ and liquor is a pricey 24.1¢. With the government narrowly avoiding shutting down right next door, it’s a fair bet that at least a few people will be getting their drink on. less

What NerdWallet said: How does the state that ranks 4th in number of craft breweries per person end up on a list of state with high alcohol taxes? Astronomical taxes on spirits. While a shot will cost you over 25¢ in state taxes, beer (0.8¢) and wine (2.6¢) are comparatively cheap. To save some cash, swap out your vodka tonic for a chardonnay – you’ll be sure to find a vintage that suits your taste from the 3rd largest wine producer in the country. less

What NerdWallet said: In addition to being the largest state in the US, Alaska is also home to some of the heftiest alcohol taxes. With state taxes on beer (10¢), wine (9.8¢) and spirits (15¢) all uniformly high, ordering a drink in the wild north can quickly turn into an expensive proposition. Despite laws prohibiting patrons from being drunk in bars, Alaska residents looking to cut loose can enjoy events like the Great Alaska Beer and Barley Wine Festival. Microbrew aficionados will also appreciate the reduced alcohol tax rates for breweries that produce less than 2M barrels a year. less

What NerdWallet said: Birthplace of the civil rights movement and known as the Heart of Dixie, Alabama is also home to some of the highest state tax rates on alcohol in the nation (9.8¢ for beer, 3.4¢ for wine and a whopping 21.4¢ for liquor). All liquor sales are controlled by the state and regulated by the Alabama Alcoholic Beverage Control Board. Sentiment appears to be shifting towards laxer regulation around alcohol, with homebrewing recently becoming legal this last May. less

What NerdWallet said about us: Despite booming wine production and a thriving beer scene, Washington clocked in at #1 on our list, due in large part to the hefty taxes levied on spirits. The good news is that beer is taxed at a relatively low rate (7¢ per drink) making it easy to enjoy events like the Everett Craft Brew Festival. To really stretch your dollar, go for wine (a glass will only cost you 3.5¢ in state taxes). Washington’s Wine Commission makes it easy to find a winery near you so you can stop in for a taste.

What NerdWallet said: Another control state and neighbor to #3 on our list, Vermont is the well-known home of Ben and Jerry’s and the largest producer of maple syrup in the US. More importantly, it’s also the state with the highest number of microbreweries per captia, including Harpoon and Magic Hat. With beer and wine topping out at around 2.5¢ and 2.1¢ per drink respectively, it’s also one of the cheapest places to enjoy a cold brew.

*Control states where the government controls all sales. Due to pricing controls, no direct tax rate is calculated or price controls for spirits result in effective excise tax rate of 0 or less.. Ranking based on tax rate and consumption for other alcohol categories. less

What NerdWallet said: Gateway to the Rockies and home to the Coors brewing company, Colorado is also well known for its open attitude towards marijuana. Perhaps less well known is Colorado’s permissive stance towards alcohol, including the 4th lowest state tax rate on booze and a history that includes legalizing alcohol in the midst of prohibition. At less than a cent in states taxes for a beer (and just 1.3¢ and 2.7¢ for wine and liquor, respectively), residents can easily enjoy the state’s full range of microbreweries without breaking the bank. less

What NerdWallet said: All alcohol sales in New Hampshire are regulated by the state, which also boasts no income tax, making it a popular shopping destination for New Englanders. While residents of the “Live Free or Die” state may complain about leafers this time of year, it’s easy to see why so many visitors flock to the states scenic drives and expansive wildlife. Festivals like Wicked Wine and Brew and state tax rates of just 2.8¢ per beer make it easy to enjoy the best that nature has to offer.

*Control states where the government controls all sales. Due to pricing controls, no direct tax rate is calculated or price controls for spirits result in effective excise tax rate of 0 or less.. Ranking based on tax rate and consumption for other alcohol categories. less

What NerdWallet said: Part of the heartland of the Midwest and the starting point for the Oregon Trail, Missouri also boasts the second lowest taxes on alcohol in the states. In fact, Missouri has a long history of open attitudes towards alcohol – not only did the state never enact prohibition, there are also no state-wide open container laws and there are no specific restrictions on what types of establishments can sell alcohol. With beer (0.6¢), wine (1.6) and spirits (2.3¢) all clocking in at less than half a nickel of state taxes per drink, Missouri is a great place to kick back and enjoy your favorite adult beverage of choice. less

What NerdWallet said: The US’ least populous state is well known for its favorable tax climate that includes no individual or corporate income tax. All alcohol sales are controlled through the state (making Wyoming a ‘control state’), and tax rates on booze are rock-bottom with just 0.2¢ per beer and a negative effective tax rate on spirits due to significant pricing controls. Grab a cold one and check out the state’s awesome national parks, including spectacular views in Yellowstone and Grand Teton.

*Control states where the government controls all sales. Due to pricing controls, no direct tax rate is calculated or price controls for spirits result in effective excise tax rate of 0 or less.. Ranking based on tax rate and consumption for other alcohol categories.

What NerdWallet said: The US’ least populous state is well known for its favorable tax climate that ... more

Photo: Gabe Rogel, Getty Images

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Study: Washington No.1 in liquor taxes

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Comparing taxes on alcoholic beverages across the nation, the consumer advocacy website NerdWallet has determined that, here in Washington, we’re paying the most. Some of the credit for those taxes must go to the fact that our government is run on sales taxes and not income taxes.

And, when it comes to increasing taxes to fund said government, it’s easier to get people to agree to a sin tax. You know, we’re supposed to feel bad about doing it and thus willing to punish ourselves: Bad drinker! Bad drinker! Barkeep – pour me another one! Also … add in the extra tax burden placed on booze for these first few years of privatization, and you have a recipe for a winning statistic.

NerdWallet explains what they did:

We crunched the numbers to find the states with the highest taxes on alcohol and compared those numbers with the total volume of beer, wine and spirits consumed in each state. The result? A definitive guide to which states tax their citizens the most for their enjoyment of booze.

Check out the gallery above for the list of states with the most and least alcohol taxes.